Is it more effective to raise the minimum wage or to subsidise the employment of the long-term unemployed?
Dear Researchers, Scientists, Friends,
Governments use various tools to combat unemployment. Raising the minimum wage aims to ensure a decent wage, while subsidising the employment of the long-term unemployed supports the economic activation of groups particularly at risk of exclusion. For the purposes of this discussion, I have formulated the following research thesis: raising the minimum wage increases workers' incomes, but can lead to a decrease in employment in low-wage sectors. On the other hand, subsidising employment increases the chances of the unemployed returning to the labour market, but requires high budgetary outlays and effective control mechanisms. Therefore, the analysis should consider the impact of both instruments on employment levels, costs to the state budget and the labour market. It is also important to examine the long-term effects – whether subsidies lead to companies becoming dependent on support, and whether raising the minimum wage has side effects, such as an increase in the grey economy. The demographic and regional impact should also be considered – how these solutions work in less developed regions.
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And what do you think about it?
Please reply,
I invite everyone to the discussion,
Thank you very much,
Best wishes,
I invite you to scientific cooperation,
Dariusz Prokopowicz